The companies believe the merger may require the divestiture of some gas stations, he said.

Until the deal closes, however, the companies said they will be going about business as usual.

Chevron will be moving ahead with development plans on the North Slope.

Despite Chevron's slight oil production, the company has a number of attractive Alaska prospects, including a 44 percent share of the undeveloped Point Thompson field and interest in several small satellite fields on the fringes of Prudhoe Bay.

Chevron also has been active in recent lease sales, including the May 1999 sale of leases in the National Petroleum Reserve-Alaska.

Chevron partnered in that sale with BP Exploration (Alaska) Inc. and Phillips Petroleum to buy 33 leases of more than 233,000 acres on the western side of the North Slope.

BP plans to begin exploring some of that land this winter.

''With this exploration potential, they could be big some day,'' the state's Logsdon said.